Finnair (FIA1S) Q3 2025 earnings summary

Executive summary

• Revenue increased by 2.0% year-over-year to €834.9 million in Q3 2025, with a comparable operating result of €50.7 million, impacted by industrial action costing €18 million in the quarter and €68 million year-to-date.

• Service quality and flight regularity rebounded to 98.9% post-strike, with customer satisfaction (NPS) rising from 28 to nearly 40 between August and September.

• Asia, especially Japan, showed strong double-digit growth in ASK and revenue, making the company the largest Europe–Japan carrier.

• Ancillary revenue per passenger increased by 11.3% in Q3, surpassing cargo revenue for the first time.

• All labor agreements concluded, supporting cost competitiveness and enabling future investments.

Financial highlights

• Comparable operating result was €50.7 million, down from €71.5 million year-over-year, with revenue up 2% to €834.9 million, both impacted by strikes and higher costs.

• EBIT margin decreased to 6.1% from 8.7% year-over-year; EPS was €0.15, down from €0.28.

• Net cash flow from operating activities was €64.0 million, down from €98.9 million.

• Operating expenses increased by 3.9%, mainly due to higher staff, traffic charges, and capacity rents.

• Equity ratio improved to 17.7%, and gearing declined to 133.4%.

Outlook and guidance

• 2025 revenue guidance lowered to approximately €3.1 billion, with comparable operating result guidance narrowed to €30–60 million.

• Capacity (ASK) expected to increase by about 2% in 2025, revised down from previous guidance.

• Profitability pressured by EU sustainable aviation fuel mandates, rising navigation and landing charges, and regulatory changes.

• Guidance was lowered due to weak North Atlantic demand, indirect effects of industrial action, unplanned maintenance, and fuel price developments.

• Environmental costs expected to rise slightly in 2026 as remaining EU ETS benefits phase out.